Loan-to-Value Ratios in the UAE: How Much Can You Actually Borrow?

The Loan-to-Value (LTV) ratio, the percentage of a property's value a bank is willing to finance, is the single most important number for understanding how much cash a buyer actually needs upfront, since the remaining percentage after the LTV becomes the mandatory down payment the buyer must cover from their own funds.

For expatriate residents, the Central Bank framework generally sets the maximum LTV at 80% for a first property valued at AED 5 million or less (meaning a minimum 20% down payment), dropping to 70% for properties above that threshold (a 30% minimum down payment), and further restricting to around 65% for a second or subsequent property regardless of value, reflecting the higher risk profile the Central Bank assigns to investment properties beyond a primary residence. UAE nationals receive more generous terms throughout, up to 85% LTV for a first property under AED 5 million and 75% above that threshold, while non-residents face considerably more conservative limits, typically 50-65% LTV depending on the specific bank and property value, translating to a substantial 35-50% down payment requirement.

Off-plan properties carry their own distinct, more restrictive cap across all buyer categories: given the longer-term nature of the construction process and the inherent completion risk involved, the maximum LTV for off-plan mortgages is capped at 50% regardless of buyer nationality, residency status, or property value, meaning even a UAE national purchasing off-plan faces the same 50% ceiling that would otherwise only apply to considerably higher-value ready properties. Given how these LTV caps directly determine the actual cash a buyer needs at signing, well beyond the down payment alone once transaction fees are added, prospective buyers should calculate their genuine total cash requirement based on their specific residency category, property value, and whether the purchase is off-plan or ready, rather than assuming a single "20% down payment" figure applies universally across every scenario.